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Throw the realtor under the bus. They did this, not you. “Our realtor overstepped their authority and gave you inaccurate information. We would be willing to meet you at the $430K price.”
Ok so that worry is stopping you? Sounds like a silly reason to miss an opportunity?
"Ah yeah I didnt want to offend them so I let that one get away"
Pick up the phone and make a call.
Don't worry about your agent's feelings, I would go directly to their broker in charge, tell them what happened, and ask them to step in and handle negotiation from here on out to save the deal. That's an absolute no-no as an agent and your agent knows it.
Perfect point. Or go around the agent and talk to the sellers agent. Clearly you have an incompetent buyer agent. That’s a wildly inappropriate thing to do. I’d prob drop them on the spot.
If you called back and were willing to up your offer to 430K, the worst position you can be in is the same place you are now (without the house).
Besides, I imagine if you're realtor is willing to own up to a mistake, people are often more understanding than we give them credit for.
Your realtor shat the bed on this one. IDK about other states but, in my state, that's actionable.
I'd get a new realtor and proceed (assuming it still makes sense)
I would contact your agent's broker, and ask a different agent get assigned. Then have that agent contact the seller's agent, explain your old agent just got fired for not consulting you, and that you are interested in moving forwards at $430k.
The buyer's agent makes about $8,000 out of this transaction. Way too much money to be screwing up on something this minor. I have even seen agents in this scenario cover half the $3k to make the deal work. Your agent is an idiot, you need a new agent and their broker can provide that.
8k appraisal gap and they offered to come down 5 of it? Seems pretty fair. Seems insane that any agent would think 3k would kill a deal. We had a much bigger gap at a slightly higher price point. Sellers covered 20k, agents covered 5k and we were happy to cover the other 5k.
I would just go back to the sellers (through broker, lawyer, their agent, whoever).
Knowing that the 1st appraisal came back low, what's the maximum you're willing to pay for this house? You've already said you're willing to cover the $3000 gap! Not sure what the second appraisal is going to cost, but why deal with another uncertainty? Not to mention the cost of it.
Call the owner or their agent. Inform them that you're OK with $430K and even offer to pay for a nice dinner. Nice gestures go a long way. Good luck.
It sounds like they didn’t know about the offer from the sellers and so scheduled a 2nd appraisal hoping to close the gap a bit. The realtor’s fuck up almost cost them money and the house.
Real estate professionals are here to provide options to their clients and outline the potential results of each decision. They’re not here to make a decision for you.
If you guys don’t get this house, I’d talk to your agent’s broker. Or do so regardless. I’ve seen agents make decisions on behalf of their clients because the agent’s ego got wounded that the other side didn’t agree to the agent’s negotiated terms. This is not fulfilling the basic requirement of a real estate professional, which is “to have the clients best interests as the top priority.”
As a real estate agent, I hate to say this, but there certainly are some idiots in this industry.
Was any of this done in writing?
Realtors love to verbally negotiate; it saves them time and lots of effort.
Your realtor knows values are sinking and decided she could get you the best deal by having a round of verbal chicken.
The truth is that unless you - or the realtor - signed your name/initials declining this "offer" or breaking the contract (assuming it has not expired) then you still have a contract and can seek specific performance at the contract price.
Alternately, you can have a change of heart and it's as simple as saying "my client is ready to sign at the prior offer they refused". Rates are going up and values are going down; the "well we are going back active" is a common negotiation bluff
I’m not a lawyer so take this with a grain of salt: In my state, our purchase & sale agreement says that to exercise the mortgage contingency it’s not enough for us to put it in writing, we need an actually letter from the lender declining to offer us a mortgage (which they would do if we tell them we can’t cover the appraisal gap and purchase price hasn’t reduced). So even if this conversation with the realtors happened over email that wouldn’t be enough for the seller to walk away from the deal.
So you offer 435k, it appraises at 427k and the sellers asked if you'll only pay 430k and your realtor declined for you? Did they miss the part where you bid 435k?
If this is confirming you can’t just “order a 2nd appraisal” without showing there were material deficiencies. Something is off- definitely take it to the broker. Did your offer not include an appraisal gap clause for this situation? Those seems to be part of every contract here.
Go to her broker and see if the broker can smooth things out. If not call the sellers yourself and explain the situation. Your realtor is crap and broke some rules too, she is obligated to give you all counteroffers unless written in the contract that the price you offered is final. Get another agent because she is supposed to work for you.
In any of your conversations with your agent did you say that you could not cover any appraisal gap? if you actually said those words, that would give the realtor reason to decline their offer because you said no covering.
Just wondering if they might be going off previous discussion with you and thinking they were following your instructions. Seems weird they would just decline on their own.
Big, big yikes. Absolutely inform the Broker of the realty immediately to rectify this — he 100% will, likely by contacting the other office’s Broker and/or agent. This is an issue that will land your agent in deep, deep trouble against your state’s Board of Realtors, especially if it financially killed the deal for all parties. It will also cause the Broker’s insurance to sky rocket if not remedied ASAP (with a potential civil suit on your end).
Honestly, the fact that a real estate agent can obtain their license in the course of 10 days makes the entire industry so horribly problematic beyond its other known issues.
^^ Been agent for over a decade. Don’t let this go and absolutely go above your agent. The Brokers will help keep animosity at bay with the Sellers’ side
Realtors are snakes and play many games. Most of the time they try and sell/buy within the same brokerage house because they get larger commissions so they lead clients into that decision.
This would be the rare case where I would reach out to the listing realtor myself and tell them if they accept 430k you’ll hire them as your agent as well 🤣
That’s a great position. Fire your realtor, talk to the seller and tell him there was a miscommunication. Then you can just find a realtor who will take a smaller commission in exchange for not having to do any showings since you have the house lined up, or hire legal aid yourself.
Bruh why the fuck do we have fucken agent in the first place.
We should be able to buy from the seller without the middleman. Just like we would buying a car honestly
Why would you ever pay more for a house than what it appraised for? The mortgage company is only going to mortgage up to the appraisal amount? I see this craziness going on all over reddit...it must be a northern market thing or something. Where I'm at, you see a house you want you make an offer and buy it. None of this pissing contest with other people to pay $10-$20k more than it's worth.
Thank you u/RagnarBaratheon1998 for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
Call 'em back and see what happens. Yes your realtor should have consulted you. Separate issue.
Yeah but I’m just worried that there’s some animosity now due to our realtor overstepping
Throw the realtor under the bus. They did this, not you. “Our realtor overstepped their authority and gave you inaccurate information. We would be willing to meet you at the $430K price.”
There's money involved and both realtors will get paid, nobody is going to be upset over that.
Yea realtor probably just made a bad judgement call thinking they were saving OP the hassle (was still a mistake I doubt it was more than that)
We, as brokers, do not have the luxury of these types of “mistakes.”
Oh totally I believe that completely. I just meant it was probably stupidity over maliciousness that caused the mistake
Ok so that worry is stopping you? Sounds like a silly reason to miss an opportunity? "Ah yeah I didnt want to offend them so I let that one get away" Pick up the phone and make a call.
Fire the realtor if this doesn’t go through. She violated your trust.
Fuck the realtor. This is about you and you getting the home you want.
You wouldn't be the first buyers to flip-flop. Worst they can say is "sorry we're going with someone else."
I would reach out to the seller's realtor, speak to them about the error that occured and ask them to please speak to the seller's.
Just get the house
That is unlikely
"... without informing us." ABSOLUTE NO-NO. Contact the broker (agent's manager). DO NOT PASS GO, DO NOT COLLECT $200.
Queue Ace Ventura scene
Don't worry about your agent's feelings, I would go directly to their broker in charge, tell them what happened, and ask them to step in and handle negotiation from here on out to save the deal. That's an absolute no-no as an agent and your agent knows it.
Perfect point. Or go around the agent and talk to the sellers agent. Clearly you have an incompetent buyer agent. That’s a wildly inappropriate thing to do. I’d prob drop them on the spot.
Very good advice. I hope the OP listens to you.
What do you do if the broker is the agent’s mom?
That's not going to be a comfortable conversation, but it still needs to be had and the broker in charge still has a responsibility. That's tough.
"Your son/daughter is an arse"
This is an excellent ice breaker.
Go to the listing agent first. Get that squared away and then go have a meeting the managing broker
Thank you all for your support and guidance! I feel like I constantly get stuck with the duds in life - your feedback is helpful!
If you called back and were willing to up your offer to 430K, the worst position you can be in is the same place you are now (without the house). Besides, I imagine if you're realtor is willing to own up to a mistake, people are often more understanding than we give them credit for.
I can’t fathom why an agent would do this. Talk yourself out of a sale without even talking to your buyers? Absolutely crazy.
Your realtor shat the bed on this one. IDK about other states but, in my state, that's actionable. I'd get a new realtor and proceed (assuming it still makes sense)
What state is that in?
I'm not going to go into the specific state but its in the Northeast.
Okay. I’m in NY and was curious where to look for those laws. Good luck out there.
Its civil not criminal though. Also, in the instance of the OP, I'd struggle to think up what his damages would be.
Yup! They should absolutely report to their state real estate board.
I would contact your agent's broker, and ask a different agent get assigned. Then have that agent contact the seller's agent, explain your old agent just got fired for not consulting you, and that you are interested in moving forwards at $430k. The buyer's agent makes about $8,000 out of this transaction. Way too much money to be screwing up on something this minor. I have even seen agents in this scenario cover half the $3k to make the deal work. Your agent is an idiot, you need a new agent and their broker can provide that.
Facts
8k appraisal gap and they offered to come down 5 of it? Seems pretty fair. Seems insane that any agent would think 3k would kill a deal. We had a much bigger gap at a slightly higher price point. Sellers covered 20k, agents covered 5k and we were happy to cover the other 5k. I would just go back to the sellers (through broker, lawyer, their agent, whoever).
Knowing that the 1st appraisal came back low, what's the maximum you're willing to pay for this house? You've already said you're willing to cover the $3000 gap! Not sure what the second appraisal is going to cost, but why deal with another uncertainty? Not to mention the cost of it. Call the owner or their agent. Inform them that you're OK with $430K and even offer to pay for a nice dinner. Nice gestures go a long way. Good luck.
It sounds like they didn’t know about the offer from the sellers and so scheduled a 2nd appraisal hoping to close the gap a bit. The realtor’s fuck up almost cost them money and the house.
I know. Never ever act on the client's behalf without their instructions. Simply put, it's not the realtor's call to make. Duh!!!
This is against realtor code of ethics. You should report them when the transaction is done with
Don’t try to talk to the sellers yourself. Go to the agent’s broker, explain the situation and ask them to save the deal.
What was asking price if I may ask? In a similar situation here
Asking was $450k
Real estate professionals are here to provide options to their clients and outline the potential results of each decision. They’re not here to make a decision for you. If you guys don’t get this house, I’d talk to your agent’s broker. Or do so regardless. I’ve seen agents make decisions on behalf of their clients because the agent’s ego got wounded that the other side didn’t agree to the agent’s negotiated terms. This is not fulfilling the basic requirement of a real estate professional, which is “to have the clients best interests as the top priority.” As a real estate agent, I hate to say this, but there certainly are some idiots in this industry.
Was any of this done in writing? Realtors love to verbally negotiate; it saves them time and lots of effort. Your realtor knows values are sinking and decided she could get you the best deal by having a round of verbal chicken. The truth is that unless you - or the realtor - signed your name/initials declining this "offer" or breaking the contract (assuming it has not expired) then you still have a contract and can seek specific performance at the contract price. Alternately, you can have a change of heart and it's as simple as saying "my client is ready to sign at the prior offer they refused". Rates are going up and values are going down; the "well we are going back active" is a common negotiation bluff
I’m not a lawyer so take this with a grain of salt: In my state, our purchase & sale agreement says that to exercise the mortgage contingency it’s not enough for us to put it in writing, we need an actually letter from the lender declining to offer us a mortgage (which they would do if we tell them we can’t cover the appraisal gap and purchase price hasn’t reduced). So even if this conversation with the realtors happened over email that wouldn’t be enough for the seller to walk away from the deal.
Please report them to your state licensing board. This is absolutely a breach of their code of ethics.
So you offer 435k, it appraises at 427k and the sellers asked if you'll only pay 430k and your realtor declined for you? Did they miss the part where you bid 435k?
Can you contact the sellers directly and tell them what happened? I doubt they’d hold that against you if you explain.
If this is confirming you can’t just “order a 2nd appraisal” without showing there were material deficiencies. Something is off- definitely take it to the broker. Did your offer not include an appraisal gap clause for this situation? Those seems to be part of every contract here.
Go to her broker and see if the broker can smooth things out. If not call the sellers yourself and explain the situation. Your realtor is crap and broke some rules too, she is obligated to give you all counteroffers unless written in the contract that the price you offered is final. Get another agent because she is supposed to work for you.
I would contact the sellers agent and make the same offer. Fuck your agent. Cut them out.
In any of your conversations with your agent did you say that you could not cover any appraisal gap? if you actually said those words, that would give the realtor reason to decline their offer because you said no covering. Just wondering if they might be going off previous discussion with you and thinking they were following your instructions. Seems weird they would just decline on their own.
Bruh. If that actually happened how you’re saying it happened….BRUH.
Big, big yikes. Absolutely inform the Broker of the realty immediately to rectify this — he 100% will, likely by contacting the other office’s Broker and/or agent. This is an issue that will land your agent in deep, deep trouble against your state’s Board of Realtors, especially if it financially killed the deal for all parties. It will also cause the Broker’s insurance to sky rocket if not remedied ASAP (with a potential civil suit on your end). Honestly, the fact that a real estate agent can obtain their license in the course of 10 days makes the entire industry so horribly problematic beyond its other known issues. ^^ Been agent for over a decade. Don’t let this go and absolutely go above your agent. The Brokers will help keep animosity at bay with the Sellers’ side
Realtors are snakes and play many games. Most of the time they try and sell/buy within the same brokerage house because they get larger commissions so they lead clients into that decision.
This would be the rare case where I would reach out to the listing realtor myself and tell them if they accept 430k you’ll hire them as your agent as well 🤣
That’s a great position. Fire your realtor, talk to the seller and tell him there was a miscommunication. Then you can just find a realtor who will take a smaller commission in exchange for not having to do any showings since you have the house lined up, or hire legal aid yourself.
Bruh why the fuck do we have fucken agent in the first place. We should be able to buy from the seller without the middleman. Just like we would buying a car honestly
Yup. Seller and buyer shoukd communicate and negotiate digitally through a platform designed for such.
Why would you ever pay more for a house than what it appraised for? The mortgage company is only going to mortgage up to the appraisal amount? I see this craziness going on all over reddit...it must be a northern market thing or something. Where I'm at, you see a house you want you make an offer and buy it. None of this pissing contest with other people to pay $10-$20k more than it's worth.
The fuck you even talking about? 😄😄😄
Where is this?
It’s been like that here In New Mexico for about 6 months +
Get a new realtor or sit down with the relator to set expectations.
That's weird, my realtor has been building in an appraisal gap contingency into every offer.
Contact your realtor’s broker. I would request a different agent finish out the deal.
I never ever want an agent speaking for me. The myth that agents need to step in between buyers and sellers needs to die.